Quote:
Originally Posted by Calgaryborn
We don't know how much a government shut down will effect the markets. Also, if the tea party gets their way and cuts entitlements while reforming the tax code you might see some quick gains once an agreement is reached.
Anyways for the Teaparty House Representatives it is a matter of keeping their promise to the electorate.
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Why would cutting entitlements help the stock market????
You do realize that those entitlements, like social security, contribute to GDP. When they cut people's Medicare / Medicaid, it's not that they're going to spend out of pocket... they're just going to defer the visit / procedure / buy less drugs. That means Kaiser, Pfizer and the local general practitioner all take a hit, thereby reducing their income and reducing their taxes paid.
All of the above results in less revenues to corporations, and the government taking in less taxes. In effect, back to recession.
Also, why would any US citizen want their country to mandatorily run a balanced budget??? They're the country with the best credit rating in the world, so they're supposed to forgo making any type of national investment that would require them to draw a line of credit? Can you name any successful company that doesn't leverage its balance sheet?
I really have to shake my head at what you're writing.